Coinbase recently become the first cryptocurrency company to enter the tally of Fortune 500. The company posted revenue of more than $7.8 billion for the financial year 2021. Coinbase stood at the 437th spot on the list. Meanwhile, a report has come out claiming that the company heads have sold their shares since the IPO.
Coinbase share dump by 40% this month
According to a report by The Wall Street Journal, Four top Coinbase officials have banked over $1 billion by selling the shares. It is important to note that these share sales took place after the crypto exchange got listed publicly. The report mentions that Coinbase’s share prices have declined by almost 80%. Coinbase’s share is trading at a price of $72.2.
The report claims that Co founders Brian Armstrong and Fred Ehrsam, COO Emilie Choi and CPO Surojit Chatterjee went on a selling spree. Around $1.2 billion worth of shares were sold by the top officials. The crypto exchange’s shares were opened at $381 on April 14, 20221. However, the Coinbase heads sold their part of shares between the price range of $189 to $422.
It should be noted that the Cryptocurrency market is trading under pressure since the beginning of this year. Investors have been trading in the fear of increasing inflation and surging interest rates. Bitcoin is down by 25% while Coinbase’s price has dropped by 40% this month.
Armstrong sells shares worth $290 million
The report adds that Armstrong and his trust sold shares of over $290 million. However, he still has the majority of the shares in the company with around 59% of the voting power. Choi and Chatterjee choose to sell shares worth $226 million and $110 million, respectively. Meanwhile, Ehrsam bought $75 million worth of shares on the behalf of Paradigm One LP when the company’s stock price dropped this month.
On May 11, Armstrong in a Twitter thread clarified that Coinbase has no risk of bankruptcy. He added that Company has included a new risk factor based on SEC requirements.